Workers Compensation

Workers Compensation Insurance

Workers
Compensation is not mandatory in Texas. Recent tort reforms changes by
the Texas Legislature have resulted in improvements in the state’s
program for workers compensation and improvement in the overall Texas
business climate.

The Texas Department of Insurance’s Division
of Workers’ Compensation (DWC) regulates the state’s workers’
compensation system and certifies employers that want to self-insure.

Texas doesn’t require most private employers to have workers’
compensation insurance. Private employers who contract with the
government are required to provide workers’ compensation coverage for
each employee working on the public project. Some clients may also
require their contractors to have workers’ compensation insurance.

Employers who choose not to have workers’ compensation insurance must

File an annual notice with TDI.

Display notices of non-coverage in the personnel office and throughout the workplace.

Give a written statement of non-coverage to each new employee.

Legal Protections

Employers with workers’ compensation have some important legal
protections, including immunity from most lawsuits by injured workers.
If an employer has workers’ compensation insurance, a lawsuit may go to
court after it’s been through TDI’s administrative dispute process. The
court will consider TDI’s recommendations, and only issues in dispute
may be used as evidence. Resolved issues can’t be reintroduced. The
employer’s insurance company pays attorneys’ fees and other defense
costs.

Employers without workers’ compensation could have to
pay punitive damages if they lose lawsuits. They also lose certain
common-law defenses, such as arguing that: